Voluntary Early Retirement ?
RichD
2 Posts
I am an HR Director in a local government that is looking at potential ways to reduce costs. I would like to hear from organizations that have implemented voluntary early retirement activities and what results you actually realized from the process. What structure did you use? What enticements worked the best? Did you actually save personnel costs? Any information and perhaps copies of the program you implemented would be great.
Flatlander.
Flatlander.
Comments
-Three tiers of monetary incentive depending on years of service (i.e., $6000 for 5 years, $12,000 for 10 years, $18,000 for 15+ years);
-Employees could take incentive as a lump sum cash payment or apply to continued health insurance premiums;
-Employees could remain working as a temporary employee for a limited amount of time as allowed by our retirement system, if agreed to by Department Director;
-Employees agreed that they were not eligible for reemployment for three years; and
-Employees waived and released the City from any and all claims they may have.
We had 14 employees (from a workforce of approximately 400) participate. Yes, it saved money as departments could not refill position (althought some exceptions were made).
We are in the process of contemplating another round and may change the incentive to something like $5000 plus a set amount ($500?) per year of service.
If you want to discuss further, let me know.
Just offered VSIP for second year:
lump sum pay out equal to three years current health insurance premium
or
three years health insurance
or any combo there of
Had to be at or within one year of normal retirement date.
Also had to sign release
10 takers this year, 11 last year.. .Think we had like 32 eligible last year, 29 this
We currently have 317 FT employees.
We saved some. . more this year as at least 4 positions are not being replaced at all.
Hope this helps.